A Melbourne-based investor has purchased the Priceline Pharmacy building at Caloundra for $2.875 million.
The property, 100% percent leased to Star Pharmacy Group Pty Ltd, was offered for sale via a successful expressions of interest campaign.
The asset, at 66 Bulcock Street, was marketed and sold by Ray White Commercial QLD father and son duo Stephen and Elliot Kidd, in conjunction with Henzells Commercial Real Estate’s Paul Bell.
Stephen Kidd said the Melbourne investors – one of over 200 enquiries – acquired the property as their first Queensland asset and were now looking for more health-related assets.
“As a result of the COVID-19 pandemic, there’s more interest than ever before in the Sunshine State, with tenanted investments proving to be like gold-dust,” he said.
“The Caloundra campaign focused their attention on the southern end of the coast which has quite limited purchase opportunities. Demand is certainly out-weighing supply and putting upward pressure on prices.
“When you combine the affordability of the state, the climate, historic low interest rates and the relative safety from the COVID-19 pandemic, it’s the perfect recipe for buyers to invest.”
Elliot Kidd said the two-level commercial building was in the heart of one of the Sunshine Coast’s most popular tourist destinations.
“A new corporate head lease from the Star Pharmacy Group over the entire building was being offered, with the ground floor retail occupied by Priceline Pharmacy, and upstairs previously used as a function room,” he said.
“The area was chosen by the vendor considering the significant financial synergies offered by the adjacent medical centre.
“Its prime exposure to high traffic flows and the growing underlying trade area population and tourist numbers were also real drawcards.
“The current net income produces $166,340 after all deductions, including land tax and ground floor income, and is underwritten by a fresh five-year corporate lease with options until 2045.”
